Global net revenue from money management is expected to more than triple to $900 billion by 2010, up from $277 billion in 1996, according to a new report.
The study -- done by Oliver, Wyman & Co. for Strategic Finance, a new quarterly publication of the Economist Intelligence Unit -- projects revenue to grow at a 9% annual clip, making money management one of the fast-growing sectors in the global economy.
Growth is driven by a number of factors: modest economic growth; faster wealth buildup among the affluent; continued growth in investments as a share of total financial assets; aging populations in Western countries; and an emerging middle class in developing companies.
The share of net revenue by North American firms is projected to slip, to 47% from 53%, but the absolute size still is eye-popping: revenue is expected to grow to $423 billion from $148 billion in the 14-year period.
European-based revenue is projected to take 28% of the pie, up from 25%. That's a hike to $252 billion in 2010 from $69 billion in 1996.
Breakdowns by type of money management activity also are revealing. In 1996, mutual funds accounted for 29% of global net revenue. Pensions accounted for 23.9%; retail securities, 21.7%; private banking, 20.7%; and private equity, 4.7%. North America dominated all areas, except for private banking, where Europe has the largest share.